Lenskart pulled off a dramatic recovery Monday, clawing back from an 11% intraday plunge to close slightly above its IPO price of ₹402. The Indian eyewear retailer's $821 million public debut has ignited fierce debate over its nearly $8 billion valuation, with the stock trading as low as ₹356 before finishing at ₹404.55. Despite being oversubscribed 28 times, questions linger about whether the company's premium pricing can hold.
Lenskart just gave investors a masterclass in volatility. The Indian eyewear giant's shares plummeted as much as 11% during Monday's trading debut before staging a late-session recovery that saved face for one of the year's most anticipated IPOs.
The stock opened at ₹395, already below the ₹402 IPO price that valued the company at ₹702 billion (roughly $8 billion). By midday, shares had tumbled to ₹356.10 as traders questioned whether Lenskart's premium valuation made sense. But institutional buyers stepped in during the final hours, pushing the stock to close at ₹404.55 - just barely above the IPO price.
That narrow escape masks deeper concerns about the company's eye-watering valuation metrics. At current levels, Lenskart trades at roughly 230 times its core net profit and 10 times revenue - multiples that have retail investors and social media buzzing with skepticism. The valuation represents a more than 60% jump from the $5 billion level where shares changed hands in a secondary sale involving Fidelity and Temasek just last June.
"We didn't build Lenskart to reach a valuation," CEO Peyush Bansal told reporters at the IPO ceremony in Mumbai, according to the TechCrunch report. "We did it to reach people, from Delhi to the smallest towns of India." The comments came as Bansal - who's gained celebrity status as a judge on Shark Tank India - defended the pricing as "fairly priced" based on institutional feedback.
The numbers tell a more complex story. Lenskart reported revenue of ₹66.53 billion (about $750 million) for fiscal 2025, up 23% year-over-year. Net profit hit ₹2.97 billion ($33 million), but that included a ₹1.67 billion accounting gain from its Owndays acquisition. Strip out that one-time boost, and core profit drops to just ₹1.30 billion - roughly $15 million.
DSP Asset Managers, which invested ahead of the listing, mounted a public defense of the valuation despite calling it "expensive." The firm argued in social media posts that the business remains "strong and scalable," pushing back against critics who've questioned the premium pricing.
The IPO's reception reflects broader tensions in India's startup ecosystem. Lenskart's vertically integrated model - controlling everything from manufacturing to retail stores - positions it to compete against legacy chains like Titan Eye+ and emerging direct-to-consumer players. But scaling profitably across India's diverse market while expanding overseas remains an open question.
Institutional appetite drove the IPO's 28x oversubscription, with heavy participation from domestic and international funds. Existing backers including SoftBank, Schroders Capital, and Premji Invest sold shares alongside co-founders Peyush and Nehal Bansal.
The timing reflects broader momentum in India's IPO market. Fintech giants Groww and Pine Labs, edtech platform PhysicsWallah, and consumer brand BoAt are all preparing public debuts as late-stage VC funding tightens and domestic investor appetite grows. Lenskart's mixed reception could signal how investors will greet this wave of startup listings.
The company plans to deploy IPO proceeds for expansion, including new stores, supply chain strengthening, and technology investments. Management has also earmarked funds for potential acquisitions - a strategy that could help justify the current valuation if executed successfully.
Lenskart's bumpy debut encapsulates the broader questions facing India's startup IPO wave. While institutional demand drove heavy oversubscription, the stock's volatile first day signals investor uncertainty about premium valuations in a tightening market. The company's ability to justify its $8 billion price tag will depend on executing its expansion plans while maintaining the growth rates that attracted investors in the first place. For now, barely clearing the IPO price feels more like dodging a bullet than celebrating success.
